Bengaluru, April 30 -- The Government of Karnataka has released the draft Karnataka State Excise Reforms 2026 for public consultation. The policy marks a shift towards a citizen-centric framework, where prices reflect the true social cost of alcohol consumption.

While alcohol generates Rs 34,600 crore annually, its social costs -- road accidents, domestic violence, liver disease, alcohol use disorders, and lost household income -- are estimated at Rs 51,000 crore, according to a release from Karnataka CMO.

The policy proposes a strength-based taxation system (excise linked to alcohol content + VAT), QR-based supply chain tracking, simplified digital licensing, standardised health warnings, and a shift from a quota-based retail system to...